ACCOUNTING TREATMENT FOR EXPENDITURE

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..... SIR, OUR'S IS PRIVATE LIMITED COMPANY. DURING F.Y. 2014-2015, WE HAVE SET UP NEW PROJECT IN DAHEJ SPECIAL ECONOMIC ZONE, DAHEJ. WE HAVE ELECTRICITY PURCHASE ARRANGEMENT FROM M/S TORRENT ENERGY LTD. NOW AT THE TIME OF PROVIDING ELECTRICITY LINE FROM THEIR POINT TO OUR FACTORY, WE HAVE PAID RS. 15 LAC TOWARD SERVICE LINE COST. THE COMMERCIAL PRODUCTION HAS COMMENCED IN MAY,2015. MY QUERY IS WHE .....

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..... THER SUCH EXPENDITURE IS CAPITAL EXPENDITURE OR REVENUE EXPENDITURE OR DEFERRED REVENUE EXPENSES. PLEASE PROVIDE EXPERT OPINION WITH CASE LAW IF AVAILABLE. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = In my view it is capital expenditure. - Reply By NITIN DESAI - The Reply = Sir, Thank you for your prompt response. ok, if it is capital expenditure, can we capitalised in our books of accou .....

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..... nts as there is no tangible assets created for the same, how to claim the depreciation . Nitin Desai - Reply By MARIAPPAN GOVINDARAJAN - The Reply = Your question is quite correct. I shall analyse the same and will revert. - Reply By Ganeshan Kalyani - The Reply = I guess it will fall under Plant and Machinery as per Income Tax and could be taken along with transformer cost. I would expect e .....

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..... xperts to comment on this for discussion. - Reply By Ganeshan Kalyani - The Reply = Hope the query is resolved. - ACCOUNTING TREATMENT FOR EXPENDITURE - Query Started By: - NITIN DESAI Dated:- 29-10-2015 Accounting - Auditing - Got 5 Replies - Companies Law - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement .....

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..... - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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